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The impact of informal contacts on communication efficiency in hierarchical organizations Modeling small-worldliness in a hierarchical network Master thesis defense Remko Arts The impact of informal contacts on communication efficiency in hierarchical organizations Modeling small-worldliness in a hierarchical network “Lekenpraatje” Master thesis defense Remko Arts How do informal contacts impact the communication efficiency of a hierarchical organizational communication structure? The impact of informal contacts on communication efficiency in hierarchical organizations Informal contacts The impact of informal contacts on communication efficiency in hierarchical organizations Informal contacts Communication efficiency The impact of informal contacts on communication efficiency in hierarchical organizations Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency What is a hierarchical organization? Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency Team clustering Information quality Team specialization Availability Hierarchical organizations Informal contacts Communication efficiency Team members are clustered Hierarchical organizations Informal contacts Communication efficiency What are informal contacts? Hierarchical organizations Informal contacts Communication efficiency ARE ABOUT : COFFEE Hierarchical organizations Informal contacts Impact on communication Hierarchical organizations Informal contacts Communication efficiency Hierarchical organizations Informal contacts Communication efficiency Network reach Hierarchical organizations Informal contacts Communication efficiency What is Communication efficiency? Hierarchical organizations Informal contacts Communication efficiency Something we Measure Hierarchical organizations Informal contacts Communication efficiency Team Clustering Network reach 3 Components: Hierarchy Informal contacts Efficiency Team Clustering Network reach Modeling But Previously: empirical Modeling Modeling But Exactly? Scientific papers +/- 40 scientific Aral, S., Brynjolfsson, E., & Van Alstyne, M. (2007). Productivity effects of information diffusion in network. Preliminary draft version, MIT Sloan School of Management. Barabási, A.-L. (1999). Diameter of the world-wide web. Nature, 401, 130-131. Bian, Y. (1997). Bringing strong ties back in: Indirect ties, network bridges, and job searches in China. American Sociological Review, 62(3), 366-385. Brzozowski, M. (2011). Who should I follow?: Recommending people in directed social networks. Proceedings of the Fifth International AAAI Conference on Weblogs and Social Media. 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Network structure and knowledge transfer: The effects of cohesion and range. Administrative Science Quarterly, 48, 240-267. Uzzi, B., & Spiro, J. (2005). Collaboration and creativity: The small world problem. American Journal of Sociology, 111(2), 447-504. Walsh, T. (1999). Search in a small world. In Dean, T. (Ed.), Proceedings of the Sixteenth International Joint Conference on Artificial Intelligence (pp. 1172-1177). San Francisco, CA, Morgan Kaufman Publishers Inc. Watts, D. (1999). Networks, dynamics, and the small-world. American Journal of Sociology, 105(2), 493-527. Watts, D. & Strogatz, S., (1998). Collective dynamics of small-world networks. Nature, 393, 440-442. Wilensky, U. (1999). NetLogo. Center for Connected Learning and Computer-Based Modeling, Northwestern University, Evanston, IL. Retrieved Nov 20, 2010 from: http://ccl.northwestern.edu/netlogo/ Wilensky, U. (2005). NetLogo Small Worlds model. Retrieved Nov 20, 2010 from: http://ccl.northwestern.edu/netlogo/models/SmallWorlds. Center for Connected Learning and Computer-Based Modeling, Northwestern University, Evanston, IL. Wu, L., Waber, B., Aral, S., Brynjolfsson, E., & Pentland, A. (2008). Mining face-to-face interaction networks using sociometric badges: Predicting productivity in an IT configuration task. Draft. Retrieved on September 20, 2012 from: http://ssrn.com/abstract=1130251 papers Watts & Strogatz (1998) Watts, D. & Strogatz, S., (1998). Collective dynamics of small-world networks. Nature, 393, 440-442. The impact of informal contacts on communication efficiency in hierarchical organizations Modeling small-worldliness in a hierarchical network Master thesis defense Remko Arts Watts & Strogatz (1998) X Watts & Strogatz Clustering coefficient Team Clustering (1998) Characteristic path length Network reach Clustering and Ch. Path Length High Clustering coefficient Short Characteristic path length C/L 𝑪(𝒑) = 𝒗 (𝒌𝒗 ∙ (𝒌𝒗 − 𝟏)) 𝟐 𝒆 Watts & Strogatz (1998) Small-worldliness Small-worldliness SW = C / L Watts & Strogatz vs Remko Watts & Strogatz Regular network (ring) Randomness Efficiency High Clustering + Short characteristic path length = High small-worldliness Remko Hierarchical network Informal contacts Communication efficiency Tight teams + Great network reach = Efficient communication Research question #1 How should the effect of informal contacts on communication efficiency in hierarchical organizations be modeled? NetLogo (Wilensky, 1999) +/- 15 pages of code Exp. #1: Watts & Strogatz NetLogo Watts & Strogatz rep. SW peak Research question #2 Does the efficiency of organizational communication networks change when informal connections are formed? NetLogo hierarchy Exp. #2: Hierarchy Exp. #2: Hierarchy No SW peak Research question #3 Do informal connections affect different organizational communication structures equally? Exp. #3: Hierarchy depth (Exp. # 4 in thesis) Shallow: 2 layers Deep: 8 layers Exp. #3: Hierarchy depth (Exp. # 4 in thesis) Shallow: 2 layers Deep: 8 layers SW No SW Conclusions What have we Learned? Thesis The impact of informal contacts on communication efficiency in hierarchical organizations Hierarchical organizations Informal contacts Communication efficiency Problem statement How do informal contacts impact the communication efficiency of a hierarchical organizational communication structure? Conclusions The impact of informal contacts on communication efficiency in hierarchical organizations Hierarchical organizations Informal contacts Communication efficiency Conclusions Informal contacts Increase network reach Decrease team clustering Conclusions Small organizations Suffer more from the decreased team clustering … efficiency decreases Conclusions Large organizations Benefit more from the decreased network reach … efficiency increases Limitations Thanks The impact of informal contacts on communication efficiency in hierarchical organizations Master thesis defense Remko Arts Let’s get informal. Thesis and presentation available from: : remkoarts http://remkoarts.nl/archive/